Areas Served: Maquoketa, Iowa
Maquoketa Industrial Development Assistance Service (MIDAS) – Revolving Loan Fund (RLF) Program Summary MIDAS’ goals are to create/retain jobs and/or expand the local economy.
MIDAS’ RLF is used for gap financing.
The City is not a substitute for a traditional lender.
MIDAS’ RLF may not be used as the primary vehicle to refinance another type of debt.
All loan applicants must demonstrate the ability to repay all of their loans, both MIDAS’ and others.
Uses: -Purchase or improvement of land.
-Purchase, new construction, or improvement of buildings.
-Construction, conversion, enlargement, repairs or modernization of buildings.
-Purchase of equipment, machinery.
-Purchase or development of access streets and roads, parking areas, utilities, and pollution control/abatement.
-Startup operating cost and working capital.
-Technical assistance for private business enterprises.
Loan Terms: -Loans made from the RLF typically will not be less than $5,000 or more than $20,000. -The interest rate will typically range from 3-5% and typically will not exceed prime rate by more than 2%.
The Loan Committee will determine the rate.
-Loans can be amortized over the lesser of seven years or the life of the security.
The Loan Committee shall determine the term.
Lending Criteria: -It is MIDAS’ goal to act as a “gap financing” entity and play a role as the lending body of last resort.
-The loan applicant must be able to demonstrate the ability to put at least 10% in cash into the project.
-There must be evidence presented by the applicant that indicates the RLF loan is necessary to make the proposed project feasible.
-Generally, loans are based upon criteria of $10,000 in loan funds per job (either created or retained) or some other significant community economic development impact.
-The RLF’s participation in a project shall never be more than 50%.
The applicant’s matching funds must come from a commercial lender, another lender, or the applicant’s personal funds.
-RLF loan funds will not be used to pay off any previous debt.
Refinancing construction financing is an exception to this rule, however, this must be approved by MIDAS beforehand.
-Security shall consist of the best lien available on real estate, equipment, inventory, etc.
The discounted value of the security (using typical lender discount rates) shall equal or exceed the value of the loan.
The Loan Committee may require personal guarantees and/or co-signors.
-Project / business to be assisted by the RLF program typically must be physically located within the City of Maquoketa.
If the business relocates outside of the City of Maquoketa, the Loan Committee may require immediate pay-off of the loan.
(On a case by case basis, the Loan Committee may waive this requirement and provide loan funds to a business located outside the City of Maquoketa if the committee determines doing so will have a positive economic impact on the community to be assisted with RLF funds.
) -Loans made from the RLF are subject to the USDA/Rural Development’s approval.
Contact InformationMaquoketa Area Chamber of Commerce
Address: 117 S Main
City: Maquoketa
State: Iowa
Website:
http://www.maquoketaia.com/economic/localincentive.html
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